Malaysian household financial assets hit RM3.56tri, growth slows

In 2025, Malaysia's household financial assets grew at a slower pace of 6.2 percent, compared to the 8.7 percent increase in the previous year. This deceleration was noticed in contrast to the regional and global growth trends, according to Allianz Research. The total financial assets stood at €769 billion (RM3.56 trillion).

The surge in insurance and pension-related assets contributed significantly, with growth of 11.1 percent, whereas securities and deposits witnessed growth of 2.8 percent and 2.3 percent respectively. Notably, the majority of Malaysia's wealth remained concentrated in deposits and retirement savings, constituting 68 percent of total financial assets. Most of these were held in the Employees Provident Fund.

Despite the stronger growth in insurance and pensions, Malaysia's net financial assets grew by 6.7 percent to €409 billion (RM1.89 trillion), as household liabilities increased by 5.6 percent to €360 billion (RM1.67 trillion). This resulted in net financial assets growing by 6.7 percent to €409 billion (RM1.89 trillion).

In terms of per capita wealth, Malaysia stands at €11,370 (RM52,643.10), placing it at the 39th position among the world's wealthiest countries as per the report. Globally, household financial assets expanded by 8.6 percent to a record €268.4 trillion in 2025, with asset price increases contributing about four-fifths of the wealth gain.

Allianz Research chief economist and chief investment officer Ludovic Subran highlighted that while nominal financial assets rose by 50 percent since 2019, real growth stood at a mere 23 percent, underscoring the impact of inflation. Securities emerged as the fastest-growing asset class globally, surging by 12.4 percent, more than double the growth in deposits at 5.7 percent and insurance and pensions at 5 percent.

Securities accounted for a record 46.9 percent of global financial assets, reflecting their pivotal role in wealth creation.